Tuesday 5th of May 2009
The need for IVA help has been predicted to continue rising, after Insolvency Service figures showed a record number of bankruptcies were declared in the first quarter of 2009.
KPMG has suggested that the economic downturn will result in the largest ever number of personal insolvencies being seen this year, with over 150,000 people expected to be declared bankrupt or enter into either an individual voluntary arrangement or debt relief order.
It comes after the Insolvency Service revealed that there were 29,774 insolvencies in the first three months of the year, with bankruptcies and IVAs having increased by 23.4 per cent and 11.8 per cent respectively over the last year.
Mark Sands, director of personal insolvency at KPMG, explained: "Despite the credit crunch, levels of consumer debt in the system remain at record levels."
Those whose occupation prevents them from being able to turn to bankruptcy could find that an individual voluntary arrangement offers them a way to pay off their debt in an affordable way.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Information on IVAs could negate 'expensive borrowing'
